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2013 (7) TMI 550 - MADRAS HIGH COURTForfeiture of Property - detention under the provisions of COFEPOSA, 1974 - Unexplained investment - Tainted money - Petitioner's husband detained under Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 - More than 50% value of construction cost unexplained - Construction cost of property determined at current rate by valuation officer - Held that:- It is seen that the petitioner's mother had gifted the property by way of registered gift deed. As such, the landed property which is nil encumbered property cannot be considered as bought through illegally acquired funds derived from her husband's income. Therefore, the landed property could not be forfeited, as the subsequent matter of the present dispute is only regarding the superstructure. Therefore, the forfeiture of land, which had been gifted to the petitioner by her mother through a gift deed cannot come under the purview of the "Act". The property had not been purchased by her and the petitioner had only succeeded it through her mother. The Income Tax Returns particulars furnished showed taxes paid on legal source of income and no case has been made out by the respondents to show that the Income Tax Authorities collect income tax for illegally earned money also and hence, this point is not sustainable under law. The writ petitioner has failed to give detailed explanation regarding a portion of amount which had been utilized for the construction of the said building. It is imperative that the petitioner should give explanation regarding the source of income for the construction of the building, but she has failed to do so. The second respondent, being the competent authority is equally liable to give an explanation regarding the charge of "illegal money" received by the petitioner from her husband, by way of documentary evidence, but the second respondent has failed to establish their case that the writ petitioner had acquired illegal tainted money from her husband. Therefore, the impugned order of the competent authority has not been supported through documentary evidence. Therefore, the original impugned order passed by the second respondent /competent authority is not maintainable. As such, the subsequent order passed by the first respondent is also not sustainable under law. This Court is of the further view that the second respondent had initiated the show cause proceedings in the year 1976. After the final order of the second respondent, the writ petitioner filed an appeal before the first respondent. So, the matter is pending on the file of both the respondents for about 20 years, which is an inordinate delay for deciding the issue regarding forfeiture of property. This delay has caused injustice to the petitioner. The petitioner has been enjoying the interim order passed in W.M.P.No.819 of 1998, dated 21.02.1998. As such, she is enjoying the said property for a period of more than 14 years without any interference. Under the circumstances, the property cannot be forfeited after such a long period since the other expenses for maintenance of building has also been incurred by the petitioner including further investments. The interim order shows that there is a prima facie case on the side of the petitioner. - Decided in favour of petitioner.
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